Should you invest in a Franchise or try to start your own business?
It's a good question. Well let us rephrase - it's a very common question. We get it a lot. For us the answer is easy: Invest in a franchise. Duh.
We are Franchise Consultants…what did you think we were going to say! 😂
Kidding aside, we believe going the franchise route is the safer bet. We've done both. Our clients have done both. Lessons have been learned. So, in this article, we'll explain why you should invest in a Franchise versus trying to start a business on your own.
Starting a business yourself is tough. In an average year, approximately 600,000 businesses close their doors. During COVID, that number was closer to 800,000. Small businesses are vulnerable to many different shifts in the market.
However, investing in a franchise offers insulation from sudden and dramatic downturns - because the franchisor NEEDS you to succeed. More importantly, they have resources to help you succeed. COVID provided some great insight into the strength of a franchise. We saw a number of franchisors pivot to help franchisees. For example:
Restaurants switching seamlessly from dine-in to grab-and-go or pick-up.
Adding sales staff or call centers to assist with lead generation.
Ensuring there are no issues with supply chains.
Recruiting labor on behalf of their owners.
Having this level of support is not cheap, nor is it easy to do solo. But it can make all the difference in keeping your doors open.
With a franchise, you're investing in a proven brand, with a proven process. Consumers buy from brands they know and trust. Buying into a franchise is a shortcut for instant credibility. Additionally, essential items - such as a logo, a website, collateral selling pieces, invoicing forms, business cards, and trademarks - all of which you must have to operate your business...they have already been developed, and are ready for you to use. When you try to go at it alone…these items must be produced - from scratch. That adds money, and it takes up a lot of your time. Time that could be better spent closing sales and generating income. Franchises provide a support network you can count on: This is a big one. When you invest in a franchise, the support system is already in place. Let's break that down and tell you what this means in more detail. To start, we'll touch on training. These organizations have been in business for years, and they know all the in's and out's of their industry. They know how to be the most effective in generating income quickly, and doing it the right way. Being set up from the beginning of opening your doors, to running your business the correct way, versus making costly mistakes by doing it the wrong way - is invaluable. Additionally, they have other owners that can guide you or that you can lean on. There are benchmarks and statistics so you can see how you are doing compared to the other owners in the system. These are pillars of support that you can connect with, compare notes, ask and answer questions - and learn best practices. Operational support: This speaks for itself really. Imagine having EVERYTHING you need already in place, to effectively operate your business. Also, many franchisors have well-established supply lines and vendor buying power that provide you with significant discounts right out of the gate. Obviously, these savings result in more profit to your bottom line. OPTIONS: Did you know there are over 4,000 different franchises you can invest in? We mention this because no matter what interests you…there's a franchise for you. Not only are there many different types but there are different business models as well. You can be an active franchise owner, and work full-time in your business - as many of our clients do. But you can also do it part-time. Many of our clients keep their current job and hire someone to run the day-to-day operations. Whichever way you want to work…whatever fits with your lifestyle and goals...there's a franchise out there for you.
Whatever you decide, you don't have to do it alone.
Look, we know investing in a franchise isn't right for everyone. But if you're considering opening a business, going with a franchise has a lot more benefits than trying to do it on your own. The hard part is finding the one that best fits you. Your personality. Your skillset. Your lifestyle. Luckily for you, that's what we do.
If you would like to learn more about how we will match you with opportunities that meet your needs - let's talk.